Ather Energy’s board has approved a Rs 122 crore investment to add 2.25 lakh units of annual capacity across its Hosur and AURIC plants. The company says demand is outpacing production, with about 18,000-20,000 units of monthly retail demand going unmet. As a result, Ather has also pushed the launch of the entry-level Konarc variant to Q4 FY2027, from the Q1 FY2027 timeline initially announced at launch.
- Rs 122 crore expansion to take combined capacity to about 11.45 lakh units a year
- Production constraints limit retail sales by about 18,000-20,000 units a month
- Entry-level Konarc variant delayed to Q4 FY2027
Ather Energy capacity expansion and Konarc plans
Demand is running ahead of production
Customer pre-orders more than doubled year-on-year to about 1.80 lakh units in Q2 FY2027 (July-September 2026), while average monthly production stood at about 33,000 units. During this period, Ather’s Hosur plant ran at up to 98 percent utilisation. CEO Tarun Mehta said on the company’s analyst call that there is “roughly about 20,000 units per month of unrealized retail that we are not tapping into yet.”
To keep up with rising demand, Ather’s board has approved a Rs 122 crore investment. Up to Rs 58 crore will go towards the Hosur plant, raising its annual capacity from 4.2 lakh to 4.95 lakh units by December. Ather is also working on a new battery line, which is due by Q3 FY2028.
The remaining Rs 64 crore will go towards the AURIC plant in Chhatrapati Sambhajinagar, which will begin phased commercial production in December with an initial capacity of 5 lakh units a year. Together, the two plants will have an installed capacity of about 11.45 lakh units a year, up from 9.2 lakh.
Entry-level Konarc delayed to Q4 FY2027
At the launch event, the entry-level Konarc S 100 was scheduled to launch in Q1 2027. However, that timeline now appears to have been pushed back to Q4 FY2027. Mehta said launching it while capacity remains limited would eat into sales of higher-margin models.
The Konarc is being rolled out in phases, starting in Uttar Pradesh and Rajasthan, followed by other northern, central and western states. The southern states will follow as capacity allows.
With input from Darshan Nakhwa and Eshisha Java
